HomeMy WebLinkAboutRES CC 1985 245 1985 1104RESOLUTION NO. R5_ 245
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING A CERTAIN APPLICATION
FOR FINANCING AND MAKING CERTAIN FINDINGS AND
DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON
A CERTAIN INDUSTRIAL DEVELOPMENT BOND FINANCING AND
THE ISSUANCE BY THE INDUSTRIAL DEVELOPMENT AUTHORITY
OF THE CITY OF MOORPARK OF INDUSTRIAL DEVELOPMENT
REVENUE BONDS IN A MAXIMUM PRINCIPAL AMOUNT NOT TO
EXCEED $9,500,000 (FRED KAVLI AND KAVLICO CORPORATION
PROJECT)
WHEREAS, the Industrial Development Authority of the City
of Moorpark (the "Authority ") is authorized and empowered by the
California Industrial Development Financing Act (the "Act "), being
found as Government Code Section 91500, cat sew., to finance the
acquisition and development of certain industrial activities as
permitted by the Act and to issue bonds for the purpose of enabling
industrial firms to finance the cost of such activities; and
WHEREAS, the Authority has been requested to issue and sell
its bonds to provide funds for the financing of a certain project to
be located within the City of Moorpark, California (t.he "City "), as
proposed by Kavlico Corporation (the "Co(por,rt. ion"); rrid
WHEREAS, the Authority, pursuant to an appropriate
Resolution, adopted June 17, 1985, accepted the application for
f irrancing -rs subrQitted by Fred Kav t r , (111 1 1-1-61 v : rlua t ?Tld i ne
potation (i he "Application for Ft rianc i nq" a";d noc1? ( ?0
intention to authorize and ifssut, tax - exernpt bends or other
obligations of the Authority for the purpose of providing for costs
of financing the light industrial manufacturing facility of the
Corporation, as described herein and in said Application for
Financing (the "Project "), and the casts of issuing such bonds, upon
such terms and conditions as may be agreed upon by the Authority,
the Corporation and the purchasers of the bonds, without any
liability to the Authority or the City whatever; and
WHEREAS, the City Council of the City of Moorpark,
California (the "City Council ") has been requested to acknowledge
that Fred Kavli is the sole shareholder of the stock of the
Corporation and that Fred Kavli and the Corporation are "related
persons" as said term is defined in Section 103(b) of the Internal
Revenue Code of 1954, as amended (the "Code ") and the City Council
has been requested to acknowledge and consent to the construction,
development and financing of the Project by Fred Kavli, an
individual, for lease to the Corporation (herein collectively the
"Company ") and to conduct a public hearing pursuant to
Section 103(k) of the Code, f o I ttre issuance and sale of said
tax - exempt bonds for the Project by t he k:(wipariy; and
WHEREAS, the City Council has, pursuant to Code
Section 103(k), set a public heaririot on the issuance of the Bonds
for November 4, 1985, and the City k'iNrK h. +s caused the_ pi,blication
of notice thereof which has been duly published in a newspaper of
general circulation published within r.he City; and
WHEREAS, the City Council must now approve the findings and
determinations to be made in connection with ;;yid public hearing.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK,
CALIFORNIA, DOES HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. The recitals set forth nereinabove are true
and correct in all respects.
Section 2. Pursuant to the Act, the Authority is
legally authorized to issue tax - exempt bonds and to use the proceeds
thereof to make loans to finance "facilities," as said term is
defined in the Act, including without limitation, assembling,
fabricating, manufacturing, processing or warehousing activities or
motor carrier terminals with respect to any products of agriculture,
forestry, mining or manufacture, provided that these activities have
demonstrated job creation or job retention potential.
Section 3. The City Council constitutes the governing
body of the Authority and is legally authorized to provide for the
issuance -of bonds by the Authority.
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Section 4. The City :ouncil hereby acknowledges and
recognizes that the Authority has previously declared its intention
to issue tax - exempt industrial development revenue bonds of the
Authority [or the construction and permanent financinq of the herein
described project tinder and in accordance with the Act, in amounts
sufficient to provide for the costs of financing such facilities to
be located within the City and to provide for the costs of issuance
of the bonds and for the establishment of the necessary reserve
funds, if any, and to provide tot the further security of the
bonds. The "project" as defined in the Act includes the development
of an approximately twenty -four (24) acre parcel of property located
on the west side of Los Angeles Aventie between the right -of -way of
the Simi Valley Freeway and the intersection of Los Angeles Avenue
and Nogales Avenue within a portion :,f Sec. 3, T.2N., lOW., and the
construction thereon of an approximately 130,000 square foot
industrial production facility and the acquisition of the necessary
machinery and equipment for the production of automotive electronic
sensors and electrical equipment in the City, as more fully set
forth in the Application for Financing of the Corporation
incorporated herein by this reference. The Project shall provide
the Company with appropriate facilities and shall be developed for a
total cost not to exceed $3,500,000. The tinancing for the Project
shall be derived from the issuance of tax- exempt bonds or other
obligations of the Authority in a maximum principal amount presently
estimated not to exceed Nine Million rive Hundred Thousand Dollars
v- 4,500,000). The acquisition and development costs associated wit.h
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the Project are estimated tc' be approximately $350,000, site
improvement aiid building construction costs are estimated to be
approximately $5,450,000, machinery and equipment acquisition costs
are estimated to be approximately $2,600,000, funded interest during
construction, financing, legal and miscellaneous expenses and
contingencies are estimated to be approximately $1,100,000. The
Authority intends to issue its bonds pursuant to the Act in an
amount presently estimated not t.o exceed $9,500,000 for the
financing of the Project. The bonds for the Project shall be
secured by a stand -by Letter of Credit issued by Security Pacific
National Bank.
Section 5. The City Council hereby acknowledges and
recognizes that the issuance of bonds or other obligations of the
Authority for the Project shall be authorized by resolution or
resolutions of the Authority to be adopted at a meeting or meetings
to be held for such purpose, subject to the execution of the
appropriate project agreements and such other required agreements by
the Company and the Authority and that any such agreement regarding
the tax - exempt bond financing of the Project by the Authority shall
specify that the bonds which may hereafter be issued in connection
with the Project are special obligations of the Authority, the bonds
shall not constitute a debt of either the Authority or the City and
that the general fund of neither the Authority nor the City shall be
liable for repayment of the bonds. —
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Section 6. The City Counc i 1, after h,cv i rig conducted a
public hearing, does hereby ratify and approve of the publication of
notice of said public hearing by the City Clerk, as said public
hearing is required pursuant t() the requirements of Code
Section 103(k), and does hereby find and determine that the purposes
and intent of the Authority's industrial development bond financing
providing for the authorization and issuance of industrial
development revenue bonds to provide financing for the Project
undertaken pursuant to the Act will be furthered by the issuance of
the bonds in the maximum principal amount not to exceed $9,500,000
for the purpose of providing financing for the Project. Such bonds
shall be in the principal amount presently estimated not to exceed
$9,500,000 and upon such terms and conditions as shall be set forth
in the appropriate documents prepared in connection with the bonds,
and said bonds shall be issued solely for the Project. The City
Council hereby finds and determines that the public purposes and
benefits as set forth in the Act will be furthered by the issuance
of the bonds in that the bonds will provide financing for the
Project, that such financing will thus make the Project a
financially viable and productive industrial development and thereby
provide for the accrua 1 of each of t fie public benefits t rom the use
of the facilities as proposed in they Application for Financing as
submitted by Fred Kavli and the Corporation to the Authority.
Section
1. The City
<'uunci I
hereby
as-know ledge-s
acid
1,-- ,nsents to the
construction,
development
.and
f inanc i ng of
ttie
I
Project by Fred Kav1i, an individual, lot lease to the Corporation
as described in the recitals hereof.
Section 8. The City Council hereby appoints the Mayor
of the City to serve as the elected Official to approve the issuance
of the bonds pursuant to Code Section 103 (k) at such time as the
Authority shall have approved the necessary financing documents and
agreements.
Section 9. The issuance of bonds or other obligations
by the Authority for the Project is subject to the Statewide volume
limit imposed on such bonds or other obligations by the Act.
Section 10. This Resolut -ion shall take effect upon
adoption.
SECTION 11. That the City Clerk shall certify to the
passage and adoption of this resolution and shall make a minute
of the passage and adoption thereof in the minutes of the meeting at
which the same was passed and adopted.
PASSED AND ADOPTED this 4th day of November, 1985.
ayor o the ity of Moorpark,
California
ATTEST:
-'ty Clerk
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF MOORPARK )
1, DORIS D. BANKUS , City Clerk of the City of Moorpark,
California, do hereby certify that the foregoing Resolution No. 85 -245
was adopted by the City Council of the City of Moorpark at a regular
meeting thereof held on the 4th_ day of November , 19 85
and that the same was adopted by the following roll call vote:
AYES: Councilmembers Weak, Woolard, Ferguson,
Yancy- Sutton and Mayor Prieto;
NOES: None;
ABSENT: None.
WITNESS my hand and the official seal of said City this 4th day of
November , 19 85
City Clerk
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